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PSA will be merged into FCA

Discussion in 'Mopar / FCA News' started by T_690, Feb 26, 2020.

  1. T_690

    T_690 Well-Known Member

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    FCA - Più investimenti e nessuna delocalizzazione: ecco le condizioni per il prestito Sace (at https://www.quattroruote.it/news/industria-finanza/2020/06/21/fca_piu_investimenti_e_nessuna_delocalizzazione_ecco_le_condizioni_per_il_prestito_sace.html )

    Google Translate:

    The commitments. To obtain the loan, already approved by the board of directors of Intesa Sanpaolo, Fiat Chrysler will have to increase the investments of the industrial plan for Italy from 5 billion to 5.2 billion, with the additional 200 million destined for the Melfi plant, in Basilicata. The Italian-American manufacturer will also have to avoid relocation operations, achieve the goal of full employment by 2023 and undertake not to sell the Maserati, Alfa Romeo, Fiat, Fiat Professional, Abarth, Lancia brands and participation in Sevel, the joint venture with PSA for the production of commercial vehicles in Atessa. The conditions will be included in the loan contracts together with further provisions: of the 6.3 billion euros it is established that 800 million are allocated to the Italian workforce, 1 billion for research and development and 4.5 billion to support payments to around 10,000 suppliers. In this regard, we are talking about specific constraints for foreign suppliers: there are around 1,400 and in their favor there should be no more than 1.2 billion.

    No dividends.Other conditions concern the distribution of dividends. FCA Italy, which has requested access to the state guarantees instrument and will be the only beneficiary, will not be able to distribute any coupons in 2020. This is a prerequisite already explicitly provided for in the decree, which established the entire framework of loans with state guarantees up to 80% of the amount. The Italian subsidiary of the automotive group is not, however, in a position to issue coupons to the controlling holding: the Turin-based company has, in fact, closed 2019 with a drop in turnover from 27.2 billion to 24.37 billion and with a loss of 384.2 million euros, against the red of 1.26 billion in 2018, and its parent company was forced to proceed last year with a 3 billion euro recapitalization to provide the resources needed to carry out the 5 billion investment industrial plan. On the other hand, there will be no limits to the possibility for the parent company to distribute the extraordinary dividends of € 5.5 billion established pendingmerger agreement with PSA .
     
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  2. KrisW

    KrisW Well-Known Member

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    A commitment to retain FIAT Professional and not leave SEVEL is bad news for Opel-brand LCV operations after the merger.
     
  3. T_690

    T_690 Well-Known Member

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    IMO doesn't mean much to Opel brand but they may decide to kill their LCV program.

    But this sounds very bad for Opel R&D center and for Vauxhall manufacturing jobs in the UK.
     
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  4. aldo90731

    Staff Member Level III Supporter

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  5. Stéphane Dumas

    Stéphane Dumas Well-Known Member

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    Tony K and aldo90731 like this.
  6. codypet

    codypet Well-Known Member

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  7. Deckard_Cain

    Deckard_Cain Active Member

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    As well they shouldn't. I'm a bit afraid that by not budging in the LCV concerns raised by the EU, that it might try to derail the deal.
    As was mentioned previously they should just kill the Opel LCV program.
     
  8. Adventurer55

    Adventurer55 Well-Known Member

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    Since I'm not familiar with how the powers that be in the EU look over planned mergers, are they proceeding like normal? Will the EU at the conclusion of their probe give a recommendation to the companies that will green light the merger then? Or what's next?
     
  9. KrisW

    KrisW Well-Known Member

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    This is normal... At the end it's either going to be an 'ok', meaning they don't see a risk to market competition, or an OK with conditions to offset a reduction in competition (that's very common, abs what I think will happen here, but it won't be anything huge). It's very rare that a big merger is blocked.
     
  10. MJAB

    MJAB Well-Known Member

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    In FCA-PSA merger agreement there are fees to be paid if the merger is stopped.
    The one of the two companies that will terminate the merger proposal will pay a Euro 500 million termination fee (case of "change of board recommendation") and Euro 250 million fee in case "the board has failed to hold a vote of shareholders before March 31, 2021.".
     
  11. Deckard_Cain

    Deckard_Cain Active Member

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    Well, if you ignore the Alstom/Siemens merger. The french and germans were not happy about that and now want to change the competition rules.
    Funny that when something doesn't suit the big two, they change the rules.
     
  12. Mopar International

    Mopar International Active Member

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    Marchionne always had a team of sharp legal people around him, i hope they are still there.

    They knew questions were going to be asked about this (LCV), that and the other.
    The answers are ready, discussion points on the list, where to give in and where to pay or where to sell. All this is known and ready.

    The only thing we are doing is going through all the movements of the dance.
    And when the music stops, we talk and smile at each other and in the end shake hands.
    All reputations are intact and we can carry on and create our new car company.
     
  13. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    It would appear some members of the EU are more equal than others.

    (Apologies to George Orwell)
     
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  14. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    Beentherebefore and Deckard_Cain like this.
  15. Mopar International

    Mopar International Active Member

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    Indeed, it describes the dance very well,

    [​IMG]

    Our performance in 2019........
    In spite of the huge challenges........
    We expect to meet ........
    The merger will undergo......
    The tie-up was announced at.......
    The combined company would unite.......
    The EU is concerned.......

    BUT

    Its probe "is not expected to delay our timetable to completion," Elkann said.
     
  16. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    Your post reads somewhat like poetry.

    It's not quite Haiku...but I like it!:D
     
  17. freshforged

    freshforged Well-Known Member

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    Free verse on Coffee Perk’s open mic night.
     
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  18. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    I'm ready to order a tall New Orleans style Cafe Au Lait while I wait for the Poetry Slam to begin.;)
     
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